Using a Lifetime Mortgage Calculator | How It Works in 2025
A lifetime mortgage calculator can give you an estimate of how much you may be able to release, which can provide you with useful direction when doing your financial planning for retirement. Any results are only an estimate, however.
This article contains tops tips from our experts, backed by in-depth research.
Katherine Read is a financial writer known for her work on financial planning and retirement finance, covering equity release, lifetime mortgages, home reversion, retirement planning, SIPPs, pension drawdown, and interest-only mortgages.
In his long professional career, Bert has worked with multinational companies and governments, consulting on various financial and logistical projects in Africa, Europe and Asia.
He founded TimeBank with a team of experienced finance writers and experts to help demystify topics such as equity release, lifetime mortgages, home reversions and retirement interest only mortgages, for people like himself.
In his long professional career, Bert has worked with multinational companies and governments, consulting on various financial and logistical projects in Africa, Europe and Asia.
He founded TimeBank with a team of experienced finance writers and experts to help demystify topics such as equity release, lifetime mortgages, home reversions and retirement interest only mortgages, for people like himself.
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Use our free lifetime mortgage calculator to estimate how much you may be able to access by borrowing against your home. Plan for your financial future by getting an idea of how much a lifetime mortgage could cost.
Key Takeaways
A lifetime mortgage allows homeowners aged 55+ to borrow against their property’s value, with repayment due upon death or moving into care.
Borrowers can receive funds as a lump sum or in instalments, with optional interest payments to manage costs.
Interest compounds over time, potentially increasing the total amount owed significantly.
The amount available depends on property value, age, and health factors, with online calculators providing estimates.
COMMENT:TimeBank.org.uk is an independent third-party data provider, and the information shared here is intended for informational purposes only and should not be considered financial advice.
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This article explores the following topics, drawing on our expertise in the field:
What Is a Lifetime Mortgage?
A lifetime mortgage is a type of equity release scheme available to homeowners aged 55 and over that allows them to borrow money against the value of their property.
How Does a Lifetime Mortgage Work?
A lifetime mortgage works by letting you choose to receive your loan as a lump sum or in smaller instalments.
The loan and the accrued interest are repaid when you die or move into long-term care, typically through the sale of the property.
Unlike traditional mortgages, you don't need to make monthly repayments, although some plans offer the option to pay the interest to reduce the overall cost.
As interest compounds over time, the total amount owed can increase significantly.
How Much Can You Borrow With a Lifetime Mortgage?
How much you can borrow with a lifetime mortgage will depend on the value of your home, your age, and whether you live with certain health conditions or lifestyle factors.
Why Use a Lifetime Mortgage Calculator?
Using a lifetime mortgage calculator can help you get an idea of how much you may be able to borrow by taking out one of these loans.
How Do Lifetime Mortgage Calculators Work?
Lifetime mortgage calculators work by asking you to enter certain bits of information and then using that information to present you with an estimate of how much equity you may be able to access.
You may be asked for the following:
Your age.
Your postcode.
The type of home you live in.
How much you think your home is worth.
How much you want to borrow.
Remember, an online calculator can only provide an estimate; to get a formal quote, speak to a qualified equity release advisor.
Common Questions
How much can you borrow on a lifetime mortgage?
You can usually borrow between 20% and 60% of your home’s value on a lifetime mortgage. The exact percentage will depend on your age and whether you live with certain health conditions.
How do you calculate the total interest paid on a lifetime mortgage, and what factors are important to consider?
To calculate lifetime mortgage interest, you need to consider the loan amount, interest rate, and loan term.
By inputting these details into a lifetime mortgage calculator, you can determine the total interest paid over the loan term.
What are the eligibility requirements for obtaining a lifetime mortgage?
To be eligible for a lifetime mortgage, you usually need to be aged 55 or above and own your home in the UK.
What factors should be considered before deciding to take out a lifetime mortgage?
Before deciding if a lifetime mortgage is right for you, consider your financial goals, current situation, and future plans.
Consulting a financial advisor and using tools like a lifetime mortgage calculator can help you make an informed decision.
Conclusion
If you're in or nearing retirement, a lifetime mortgage can be a useful tool for accessing the equity in your home without having to move.
Using a lifetime mortgage calculator can be a big help if you're considering this type of loan, but it's important to seek independent financial advice to understand the costs and implications fully.
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